hep global GmbH, an international specialist in the development, implementation, and operation of photovoltaic projects, as well as an investment manager for solar funds through its subsidiaries, reported revenue of €20 million and earnings before interest and taxes (EBIT) of approximately -€3 million in the first half of 2022. The first six months of 2022 were marked by low revenue levels in the key U.S. market, primarily due to the petition filed in March 2022 regarding potential punitive tariffs on solar modules from Southeast Asia. The investigation, which has been ongoing since April 2022, led to project delays and cancellations across the entire U.S. solar market. This has also resulted in delays for hep’s projects in the procurement of modules, the construction of solar parks, and the development of solar projects. During this phase, hep has stepped up activities in other markets but has also continued to work actively on the U.S. projects in order to be able to move them forward quickly once the legal situation has been clarified.
hep Releases Its 2022 Half-Year Financial Report
In June 2022, U.S. President Joe Biden announced the suspension of potential punitive tariffs until June 2024, which in turn has accelerated the further expansion of the solar industry in the U.S. As a result, hep connected a project in the U.S. with a rated capacity of 21 MWp to the grid in the second half of 2022. The connection of the remaining so-called community solar projects (community solar installations) with a total capacity of 21 MWp is expected to follow later this year.
The solar market in the U.S. received an additional boost from the Inflation Reduction Act of 2022 (IRA), passed in August 2022, which represents one of the largest investments in U.S. history. With its strong presence in the U.S. market, hep sees itself in an optimal position to participate in this development and successfully implement projects. Construction is scheduled to begin in the first half of 2023 for projects with a total capacity of approximately 540 MWp.
For the 2022 fiscal year, hep expects revenue growth to reach approximately €90 million to €100 million (previous year: €65 million) and EBIT of approximately €0 million to €5 million (previous year: €7 million). The expected significant increase in revenue and EBIT in the second half of 2022 is primarily attributable to the completion of solar parks in the U.S. that has already taken place or is still expected, as well as the realization of proceeds from project development.
The detailed 2022 half-year financial report is available for download on the company’s website at www.hepsolar.com under the section hep solar/Green Bond/Green Bond 2023/2028.